The dollar slipped on Friday due to expectations of a September Federal Reserve interest rate cut, following strong U.S. producer prices data. Money markets predict a 93% chance of a 25-basis-point rate cut. Analysts foresee potential rate cuts and a base forecast of two cuts this year.

Chicago Federal Reserve Bank President Austan Goolsbee expressed unease about rising services inflation and the impact of tariffs on the economy. Investors are also monitoring the Trump-Putin summit for potential progress on a ceasefire in Ukraine, which may affect the dollar’s performance.

Euro may benefit from a ceasefire deal in Ukraine, with the currency strengthening against the dollar. U.S. import prices rebounded in July, while retail sales increased, driven by strong demand for vehicles and promotions. The Jackson Hole symposium next week will provide insight into the Fed’s future decisions.

Fed Chair Jerome Powell may temper rate cut expectations, despite increased talks of resuming cuts. The dollar weakened against the yen following strong Japanese growth data. U.S. Treasury Secretary’s remarks on the Bank of Japan’s handling of inflation risk boosted the yen. Sterling rose against a weaker dollar after positive economic data and a hawkish rate cut by the Bank of England.

Bitcoin remained stable following a record high on Thursday, supported by expectations of easier monetary policy from the Fed and a favorable regulatory environment in Washington.

Read more at Yahoo Finance: Dollar eases as data keep September rate cut on track; eyes on Trump-Putin meeting